Wednesday, 27 January 2010

Mutual Funds Q&A

Answers from dheerendra kumar (Value research online).

1)I want to invest a sum of 1500 rs towards MFs for a period of five to seven years.Please choose a good fund to invest regularly?

If you are a first time investor or a beginner, better choose balanced funds.To do this, you can go for Franklin templeton india balanced,HDFC prudence, DSP BR balanced funds.

2)I am 29 years old.My wife depends on my income only.Taking longterm investment plan into consideration,i want to
invest in HDFC TOP 200,DSP BR EQUITY, MAGNUM CONTRA, sundaram BNP tax saver or SBI magnum taxgain and reliance growth fund.After one year,to balance port folio i would like to choose kotak flexi debt my decision right?

All the above mentioned funds are performing well in the market in various sectors.Your portfolio looks well diversified.With out any change from your portfolio.You can go a head. SBI and sundaram tax saver both are performing well. You can go for Birla Sunlife TaxRelief'96 also.

3)Which one should i choose , Birla Sunlife Tax Relief'96 or Canara Robeco Tax Saver?

Canara Robeco tax saver invests in midcap where BSL Tax Relief'96 invests in large cap.In the year 2008, Tax saving funds recorded an overall loss of 55.67 percent.BSL recorded 62.67 where as Canara recorded 46.85 percent.But, over a period of time both of these will perform well in the market.

4)My father who is retired would like to invest a sum of RS 3 lakhs in mutual funds.Please choose a fund with out risk that would pay in the form of pension/dividend every month?

First thing one needs to remember is mutual funds cannot perform with out market risks.Retired people take low risk.So debt funds are the best resort for monthly income.Debt funds are less risky compare to equity funds.Choose a better debt fund according to your investment term.You can choose one of these funds - Fortes flexi debt,Birla sunlife dynamic band, Canara Robeco Income funds. Or for zero risk, go for post office senior citizen saving scheme.This is a 5 year investment scheme which gives interest every three months.

5)I want to invest rs one lakh in MFS for SIP. Help me choose one good fund for one year period.

To invest for one year, choose debt funds. JM Money Manager Super or Fortes flexi debt fund are fine to do this.

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